Glass House Brands (GLASF) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 biomass production of 246,000 lbs, with cost of production at $122/lb, reflecting significant quarter-over-quarter improvements.

• Completed deconsolidation of retail operations, now reported as discontinued, with retail revenue through deconsolidation at $10 million.

• Uplisted to NYSE under ticker GLAS, improving trading liquidity and investor access.

• Medical cannabis rescheduling to Schedule III in April 2026 is seen as transformative, enabling interstate commerce and export opportunities.

• Ongoing investments in greenhouse upgrades and automation to drive efficiency and quality.

Financial highlights

• Q2 2026 revenue was $47 million, down slightly from $47.6 million in Q2 2025 but up from $28.6 million in Q1 2026, excluding retail.

• Gross profit reached $15.8 million, up from $4.1 million in Q1 but down from Q2 2025 due to mix and cost factors.

• Gross margin improved sequentially to 34% but was down from 55% in Q2 2025, mainly due to higher trim mix and production costs.

• Adjusted EBITDA was $5.7 million, down from $18.1 million year-over-year but up from a $4.2 million loss in Q1.

• Ended Q2 with $22.1 million in cash and equivalents; raised $4.9 million via ATM and $10 million post-quarter via warrant conversions.

Outlook and guidance

• No updated full-year guidance due to deconsolidation and pending clarity on out-of-state sales and hemp strategy.

• Plans to produce approximately 1 million lbs of biomass in 2026, with cost per pound expected to fall below $100 by year-end.

• Long-term production cost target of $95 per pound remains intact.

• Expects further scaling of production in H2 2026, targeting a year-end run rate over 1.1 million lbs.

• Anticipates further production scaling and new supply agreements, with international shipments likely before domestic.